Principles and practices of EU external representation - TMC Asser ...

More documents

Recommendations

Info

CLEER WORKING PAPERS 2012/5 Wouters, Van Kerckhoven and Odermatt sector. 106 The Commission states that this proposal ‘translates in Europe international standards on bank capital agreed at the G20 level (most commonly known as the Basel III agreement). Europe will be leading on this matter, applying these rules to more than 8000 banks, amounting for 53% of global assets.’ 107 So far, however, the CRD, one of the most significant – and also politically sensitive – regulatory measures proposed since the financial crisis, is moving very slowly through the legislative process. On 2 May 2012 an ECOFIN meeting which sought to come to an agreement on new rules failed to find a compromise solution. The United Kingdom has been critical of the Commission proposal, and wants greater flexibility given to national regulators. Systemically important financial institutions (SIFIs) At Cannes, G20 Leaders pledged that they were ‘determined to make sure that no financial firm is ”too big to fail” and that taxpayers should not bear the costs of resolution.’ G20 Leaders at Pittsburgh committed to act together to ‘[…]. create more powerful tools to hold large global firms to account for the risks they take’ 108 and to ‘develop resolution tools and frameworks for the effective resolution of financial groups to help mitigate the disruption of financial institution failures and reduce moral hazard in the future.’ 109 “Too big to fail” institutions, or Systematically Important Financial Institutions (SIFIs) are seen as another area of reform needed to adequately respond to the crisis, and one that requires co-ordinated reforms in different states. On 4 November 2011 the FSB delivered a set of ‘Policy Measures to Address Systemically Important Financial Institutions’ at the request of the G20. In response to these developments, the European Commission is developing an EU-wide crisis management framework 110 to address SIFIs. This work has been done in connection with the work on SIFIs by the Committee on Payment and Settlement Systems (CPSS) and IOSCO. The Commission is set to present legislative proposals and states that they ’will be accompanied by an impact assessment, and will complete the Commission’s implementation of the principal G20 reforms in the area of financial regulation.’ 111 As yet, the Commission has not formally adopted a legislative 106 European Commission, Proposal for a Directive of the European Parliament and the Council on the access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms and amending Directive 2002/87/EC of the European Parliament and of the Council on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate, COM (2011) 453. 107 European Commission, Commission wants stronger and more responsible banks in Europe, 20 July 2011. Press Release. 108 G20 Leaders supra note 1 para. 13. 109 Ibid. 110 Communication from the Commission to the European Parliament, The Council, The European Economic and Social Committee, the Committee of the Regions and the European Central Bank, An EU Framework for Crisis Management in the Financial Sector, Brussels, 20.10.2010: “The Commission is helping to shape the work of the FSB and the G20, and is also closely monitoring other international developments.” p.3. 111 Communication from the Commission to the European Parliament, The Council, The European Economic and Social Committee, the Committee of the Regions and the European Central 140
The EU’s external representation at the G20 and the G20’s impact on the EU proposal, but has issued a consultation document 112 and discussion paper on the technical aspects for a European framework for bank recovery and resolution. According to these papers, the Commission seeks to establish a harmonized regime for the rescue of banks and financial institutions in EU Member States, rather than creating an overarching regulatory body. Hedge Funds The commitment to reform of hedge funds made at the G20’s Toronto meeting was referred to in the Directive on Alternative Investment Funds Managers (AIFM): 113 ‘G20 Leaders in Toronto reaffirmed their commitment and also committed to accelerate the implementation of strong measures to improve transparency and regulatory oversight of hedge funds in an internationally consistent and non-discriminatory way.’ The Directive also incorporates principles of the IOSCO Hedge Funds Oversight report of 2009, which supported a globally consistent approach. Although they are not considered to have been an immediate cause of the crisis, the regulation and oversight of hedge funds has been a topic raised in G20 discussions. The European Commission President stated that ‘[the] directive – which coincides with the G20 Summit meeting in Seoul – is another example of how the EU is leading the way in implementing our G20 commitments.’ 114 Credit Rating Agencies The 2009 Regulation on Credit Rating Agencies 115 was influenced by international commitments to regulate credit rating agencies, also seen as one of the causes of the global financial crisis. The Regulation, which oversees the registration and supervision of credit rating agencies, states that ‘Credit rating agencies should, on a voluntary basis, apply the Code of Conduct Fundamentals for credit rating agencies issued by the International Organisation of Securities Commissions (IOSCO Code)’ and is broadly based on the Code of Conduct. 116 Bank, An EU Framework for Crisis Management in the Financial Sector , Brussels, 20.10.2010, p. 3. 112 European Commission, DG Internal Market and Services, Working Document, Technical Details of a Possible EU Framework for Bank Recover and Resolution, 6 January 2011. 113 Directive 2011/61/EU of the European Parliament and the Council of 8 June 2011 on Alternative Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU) No 1095/2010 [2010] OJ L171/1. 114 European Commission statement at the occasion of the European Parliament vote on the directive on hedge funds and private equity, MEMO/10/573, 11 November, 2010. 115 Regulation 1060/2009/EC of the European Parliament and the Council of 16 September 2009 on credit rating agencies [2009] OJ L302/1. 116 Code of Conduct Fundamentals for credit rating agencies issued by the International Organisation of Securities Commissions (IOSCO Code). 141 CLEER WORKING PAPERS 2012/5
Page 1:
Founded in 2008, the Centre for the
Page 4 and 5:
CLEER WORKING PAPERS 2012/5 Gosalbo
Page 6 and 7:
Page 8 and 9:
Page 10 and 11:
CLEER WORKING PAPERS 2012/5 Blockma
Page 12 and 13:
CLEER WORKING PAPERS 2012/5 Blockma
Page 14 and 15:
CLEER WORKING PAPERS 2012/5 Casolar
Page 16 and 17:
Page 18 and 19:
Page 20 and 21:
Page 22 and 23:
Page 24 and 25:
Page 26 and 27:
Page 28 and 29:
Page 30 and 31:
Page 32 and 33:
Page 34 and 35:
Page 36 and 37:
Page 38 and 39:
Page 40 and 41:
CLEER WORKING PAPERS 2012/5 Van Els
Page 42 and 43:
Page 44 and 45:
Page 46 and 47:
Page 48 and 49:
Page 50 and 51:
Page 52 and 53:
Page 54 and 55:
Page 56 and 57:
Page 58 and 59:
Page 60 and 61:
Page 62 and 63:
CLEER WORKING PAPERS 2012/5 Van Voo
Page 64 and 65:
Page 66 and 67:
Page 68 and 69:
Page 70 and 71:
Page 72 and 73:
Page 74 and 75:
Page 76 and 77:
Page 78 and 79:
Page 80 and 81:
Page 82 and 83:
Page 84 and 85:
Page 86 and 87:
CLEER WORKING PAPERS 2012/5 McArdle
Page 88 and 89:
Page 90 and 91:
Page 92 and 93: CLEER WORKING PAPERS 2012/5 McArdle
Page 106 and 107: CLEER WORKING PAPERS 2012/5 Eckes w
Page 108 and 109: CLEER WORKING PAPERS 2012/5 Eckes d
Page 110 and 111: CLEER WORKING PAPERS 2012/5 Eckes t
Page 112 and 113: CLEER WORKING PAPERS 2012/5 Eckes a
Page 114 and 115: CLEER WORKING PAPERS 2012/5 Eckes E
Page 116 and 117: CLEER WORKING PAPERS 2012/5 Eckes w
Page 118 and 119: CLEER WORKING PAPERS 2012/5 Eckes P
Page 122 and 123: CLEER WORKING PAPERS 2012/5 Eckes i
Page 130 and 131: CLEER WORKING PAPERS 2012/5 Wouters
Page 146: CLEER WORKING PAPERS 2012/5 Wouters
show all

Principles and practices of EU external representation - TMC Asser ...

Create successful ePaper yourself

Delete template?

Save as template?